To me it would only go against worldwide kinda "protocols" if everyone was crammed into a full hotel. If 60 guests are scattered among 200 rooms on 6 floors or something like that, it seems alright to me. I'd be a little worried about that, but I'd be a little worried about travelling to begin with, so I wonder how many guests they'd have in the first place.
Secondarily, I'd be a little...miffed, if I paid for a "high class" room and got given a joke one. I don't pay for expensive hotels, it's not my style, but I understand some do. Last time I was in BKK, I paid for Ibis budget and they moved me to Ibis Styles, not a huge difference by any means, but if it had been the other way around, I would've wanted a refund of the difference at least in price.